People Can Fly, the studio behind Bulletstorm, have entered an “external development partnership” with Square Enix. The precise details of that deal aren’t shared in the announcement, but it’s likely that Square will be handling publishing and distribution (and possibly providing some additional funding).
Ultimately, the two companies will be collaborating on “a new high-end original title for console and PC”. People Can Fly studio head Sebastian Wojciechowski seems keen, quoted as saying “We’ve got a great and experienced team in place, and it’s incredible to be working with Square Enix, a world-class publisher who shares our passion and excitement for the project”.
The studio are currently hiring Gameplay Programmers, AI Programmers, and a VFX Artist. That in itself doesn’t confirm much about the project, unless you were worried it wouldn’t have mechanics, AI or sounds. Seems like this title is pretty early on, and Square have confirmed it won’t be part of E3 this year.